PHD Chamber Congratulates Modi Government on a Major Breakthrough in the Economy

PHD Chamber Congratulates Modi Government on a Major Breakthrough in the Economy

No.PR-32
June 1, 2016
New Delhi

PHD Chamber Congratulates Modi Government on a Major Breakthrough in the Economy

While congratulating the Modi Government on a major breakthrough in the economy, Dr. Mahesh Gupta, President, PHD Chamber, said that the dynamic policy measures undertaken by the Government during last two years have started giving fruitful results and economy is seeing a high growth trajectory.

GDP at 7.9% for Q4 of 2015-16 is inspiring and reflecting the efforts of the Government to boost the economy, said Dr. Gupta.

We appreciate the macro-economic stability with a significant decline in inflation that has come about in the last two years with the present government coming to power, he said.

The dynamic reform measures such as Make in India, Digital India, Swachh Bharat, Jan Dhan Yojana, launch of Smart Cities and eBiz platform would go a long way to put India’s growth on high road, said Dr. Mahesh Gupta.

We acclaim the versatile reforms of the Modi Government, covering all pillars of development, he said.

The government’s focus on financial reforms, infrastructure build-up, industrial development, growth of MSMEs and agriculture reforms is highly encouraging and would go a long way to further strengthen the economy.

Reforms taken in the last two years in clean energy sources are really appreciable. Now India is going to be a power surplus country. We appreciate and congratulate the government for this breakthrough, said Dr. Gupta.

The development of road sector holds excellent performance as the pace of building roads has gone up from 2 kilometres per day to all-time high pace of 20 kilometres per day, said Dr. Mahesh Gupta.

The Railway sector is also on the path of speedy progress. We appreciate the Governments efforts in this direction.

We look forward to India’s economic growth entering high growth trajectory in the coming times under the patronage of dynamic and fast moving reforms.

We suggest a major focus on agriculture sector reforms to diversify the crop pattern, enhanced productivity, and increase in irrigation facilities and seed technology to mitigate the food inflation, said Dr. Gupta.

Improvement in India’s ranking on World Bank’s Doing Business Index to 130th from 142nd is inspiring and we look forward to further improvement in the coming times, he said.

All this can be attributed to the strong reform measures of the government which have started giving visible outcomes, said Dr. Gupta.

The improvement in rankings will boost sentiments for production of manufacturers which will give a boost to Make in India program of the government, said Dr. Gupta.

We look forward to the further improvement in ease of doing business and expect it below 50 in the next three years by 2018, he said.

We believe GST will be implemented soon to create a common market within India to reduce the transaction costs and cascading impact of complex tax system, said Dr. Gupta.

We believe that with the implementation of GST, the growth trajectory will improve by 2 percentage points with a significant improvement in ease of doing business and enhanced employment opportunities, said Dr. Mahesh Gupta.

The high transaction costs, both in terms of time taken and the money involved, are adversely impacting manufacturing competitiveness and overall business performance, he said.

The policy environment must provide provisions for reducing transaction costs. Radical decisions are needed on the time taken for paper work and permissions on various aspects, he said.

Improvement in physical infrastructure with targeted outcomes in the areas of road development, quality of railway services, expansion of ports and civil aviation would be appreciated and would help the businesses to plan their production possibility frontiers, said Dr. Gupta.

Reforms in the energy sector are needed to stem the increasing energy import dependence and making the policy conducive to facilitate transformation and adaptation. Renewable and clean energy sources must be encouraged, he said.

We appreciate the recent measures to reform the 3 archaic labour laws by the Government, said Dr. Gupta.

Further, it is suggested to repeal the existing labour laws, which put unnecessary regulatory burden on businesses; simplify the exit rules for Indian and foreign entities and frame a single comprehensive law, he said.

Dr. Mahesh Gupta said that it is important to boost entrepreneurial growth; entrepreneurship-led economic growth will act as a catalyst not to just boost innovation but also create employment.